Management Control and Value Creation in Public Entities

Financial Accounting and Management Accounting, and Strategic and Operational Management.

Expository method to approach the theoretical contents.

Active and interrogative method for case studies and scientific articles.

The curricular unit of Management Control and Value Creation in Public Entities, attentive to the primordial and increasingly relevant role that Management Control has been assuming in recent years in Public Entities, due to the greater complexity of management and the consequent need to improve its performance and obtain better results in line with the entity’s objectives.

The aims of this curricular unit are to provide master’s students with the necessary knowledge to:

1 – Analyze the transposition of management concepts and processes (Strategic, Tactical and Operational) originally conceived in the administration of private companies to the field of administration public entities.

2 – Define the Mission, Vision, Values, ​​and Objectives of the Public Entity, considering public policies.

3 – Analyze the main principles that guide public management activity and its evaluation and control, the principles of effectiveness, efficiency and economy, effectiveness or impact, equity, responsibility (accountability).

4 – Identify the role, objectives, recipients, and diversity of instruments of a management control system in Public Entities.

5 Analyze, design, develop and implement management control and evaluation instruments in public entities, both in the strategic and intermediate/functional scope, as well as in the operational one.

6 – Encourage the critical analysis of design solutions for management control systems.

Upon completion of the Curricular Unit, the student should be able to:

Understand the strategic, intermediate/functional, and operational planning process of organizations.

Articulate, adapt and insert management control in the strategic, intermediate/functional, and operational management process, with a view to creating value in public entities.

Distinguish the objectives and processes of “CONTROL” and “ASSESSMENT”.

Know THE CONTROL AND EVALUATION INSTRUMENTS IN PUBLIC MANAGEMENT, WHETHER AT THE STRATEGIC, FUNCTIONAL AND OPERATIONAL LEVEL, Benchmarking, budget management and control, Tableau de Bord (public performance evaluation indicators) and BSC – Balanced Scorecard.

Knowing how to identify the KEY CRITERIA THAT THE PUBLIC PERFORMANCE ASSESSMENT INDICATORS MUST FOLLOW

Know PUBLIC BUDGET MANAGEMENT MODELS:

The incremental budget for the year (by nature)

Performance/functional budgets

The budget by programs/projects

Activity-based budget

The budget by responsibility centers (costs, results, investment).

Knowing and knowing how to use the BSC – BALANCED SCORECARD as a strategic management control instrument

Can know how to diagnose the existing management control and evaluation systems in the organization, and design the bases to conceive, develop and implement a management control and evaluation model suited to the needs of the public entity.

They must also be able to develop a schedule sheet that allows to support the construction of the balanced scorecard (BSC), and the tableau de bord in public entities

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1. Public Management versus Private Management; Evolution of public management, “Managerialism, New Public Management”

 2. Planning Levels and Tools: Strategic, Intermediate/Functional and Operational.

 3. Evaluation of public management: Concepts, principles, and key criteria to which the performance evaluation indicators of the performance of good public management must comply.

 4. Public Management Control Instruments:

    4.1 Steering Techniques 

    4.2 Organization of Behavior and performance assessment: Responsibility Centers.

    4.3 Communication and Dialogue

 5. Design of management control systems.

Knowledge assessment may be carried out, alternatively, through one of the following modalities:

• Continuous assessment; or
• Final assessment (examination).

1. Continuous Assessment (CA)

 Continuous assessment takes place throughout the semester and consists of two assignments and one written test, covering the contents taught in the course unit.

 1.1 Assignment 1 – Systematic Literature Review

 Preparation and presentation, preferably in groups of two students, of an assignment consisting of a systematic literature review on a topic related to the course unit’s syllabus.

This assignment aims to develop skills in bibliographic research, critical analysis of the literature, and knowledge systematisation.

 1.2 Assignment 2 – Development of a Management Control Instrument

Preparation and presentation, preferably in groups of four students, of an applied assignment consisting of the design and development of a management control instrument applicable to a public institution, whether real or hypothetical.

This assignment aims to promote the practical application of management control concepts to real-world contexts in the public sector.

 1.3 Written Test

 Completion of an individual, in-person written test, covering the theoretical and practical contents taught throughout the semester.

Weighting

The final grade for continuous assessment is calculated based on the following weighting:

• Assignment 1 – Systematic literature review: 25%
• Assignment 2 – Management control instrument: 40%
• Written test: 35%

Students are considered to have passed under the continuous assessment modality if they obtain a minimum final grade of 9.5.

The deadlines for assignment submission and the date of the written test will be defined throughout the semester and announced in class and on Nónio (InforEstudante).

2. Final Assessment (Examination)

Under the final assessment modality, knowledge is assessed through a written examination.

Students are considered to have passed if they obtain a final grade equal to or higher than 9.5.

NAO